According to Beazley’s Digital Health & Wellness 2024 report, 86% of digital health firms plan to increase their use of AI for diagnosing or treating patients. However, concerns about trustworthiness, bias, and intellectual property theft are prevalent, with 80% of executives expressing concerns about AI’s reliability, 78% worried about bias, and 79% citing intellectual property risks.
Despite the increasing reliance on AI, Beazley’s research highlights a critical gap in risk protection. Fewer than a third (30%) of digital health companies have secured tailored insurance coverage that protects against bodily injury resulting from technology-related risks. The report underscores the importance of having adequate insurance in place as AI adoption accelerates.
The survey, which included 600 industry executives across Europe, North America, and Asia, also found that digital health companies are facing additional challenges, particularly in supply chain and recruitment. These issues were cited by 29% and 28% of respondents, respectively, marking a significant rise from 2022, when only 17% and 16% identified them as key growth obstacles. Additionally, less than half (43%) of the firms surveyed expect business growth in 2024, though regional variations exist.
Cybersecurity and competency risks remain top concerns for executives, with 35% of respondents identifying cyber threats such as ransomware and phishing as major risks—up from 27% in 2022. Competency concerns have also risen sharply, with 38% of executives worried that their company’s treatment or advice might not meet advertised standards, up from 24% in 2022.
Evan Smith, Product Leader for Global Healthcare and Specialty Risks at Beazley, emphasised the complexity AI introduces: “Deep learning algorithms offer great benefits but also pose substantial risks. AI often functions as a ‘black box,’ making it difficult to identify and correct bias or fully trust its recommendations. Our research shows that many businesses are not equipped with the necessary insurance coverage to protect against these evolving risks.”
As digital health firms continue to integrate AI into their operations, ensuring comprehensive risk management strategies will be essential to navigate the rapidly evolving landscape.
Keri Marmorek, Claims Team Leader for Healthcare at Beazley, highlighted the dual risks and rewards of AI: “With 87% of US digital health companies planning to expand their AI use for patient care, we anticipate a rise in claims.”
She added”Partnering with specialist insurers who understand the complexities of both cyber and healthcare risks will be crucial as this technology continues to transform the industry.”
